Art & Science of Active Trend Trading May 6th

May 6, 2018

Good Day Traders,

The Tracking Indexes presented a downside bias through Thursday after the Fed decision to not raise rates. A mixed bag on the Non-Farm Payroll report, a good earning report from AAPL and interesting things going on worldwide provided the back drop for a low volume rally that lasted all day Friday. A couple of complimenting issues to low volume provide reason to be cautious and not jump on Friday’s rally to quickly. These items are the lack of momentum and price still operating with in a wedge/triangle formation that started in January. Watch the triangle’s downward sloping resistance line and upward sloping support line for areas of interest to plan trades. Current price action lacks conviction and momentum!

Bounce Zones for Premium Members: If you are a premium member some very powerful conditional order setup information will soon be available to complement the “Go-No Go” Table each week. Chart showing zones where traders can expect prices to bounce due to supply and demand pressures. What does this mean for Premium members? Charts of our ETFs and Core Stocks with define Bounce Zones will empower you to place conditional orders around these areas for both entry and planned exits. This will be one more way Active Trend Trading will help Premium Traders with limit time for market analysis. Stay tuned for more on this beneficial feature!

With the Indexes showing weakness look for stocks that are holding up more strongly than the Indexes. Here’s a handful to watch:

Remember to register for the After Market Monday and Making Money Trading Stocks and ETFs each week. In these webinars I will provide 10-12 stock set ups per year. All Levels of ATTS members will receive these trade email alerts. The NEW Composite Watch List provides a sort of all stocks that appeared on multiple Premium IBD Watch Lists this week. Often appearing on multiple list is a sign of strength and identifies a strong long term candidate. New Composite List Provided Below!

Running List, Strongest Fundamental stocks on the IBD 50 and the NEW Composite List of Stocks showing up on multiple IBD Watch List on May 4th.

Running List: 115 stocks are on the 2018 Running list. Major swap out this week. Find the list here: Running 5-4

When the new IBD 50 list comes out twice per week I conduct a fundamental sort which results in the top fundamental IBD 50 stocks being identified. The top fundamental stocks for this week are: VNOM, LGIH, IBKR, GRUB, ABMD & SIVB. This sort is provided at: 5-4 Sorted

A new addition to the weekly watch lists for Active Trend Traders is a Composite List of IPOs and Growth Stocks appearing on multiple IBD watch list each weekend. When a stock appears on multiple Premium Lists it can potentially be an indication of excellent strength. The stocks on the weekly Composite List may not be at a sound trigger point but may be worth watching for future entries. I will do an analysis of the list looking for price near potential triggers. Stocks near potential triggers will be highlighted. The top stocks appearing on more than one IBD watch list last week are shown in the table below. The Composite List for this week: Composite 5-4